Correlation Between Citigroup and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Citigroup and Voya Intermediate at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Voya Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Voya Intermediate Bond, you can compare the effects of market volatilities on Citigroup and Voya Intermediate and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Voya Intermediate.
Diversification Opportunities for Citigroup and Voya Intermediate
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Voya is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate Bond and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Citigroup i.e., Citigroup and Voya Intermediate go up and down completely randomly.
Pair Corralation between Citigroup and Voya Intermediate
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.89 times more return on investment than Voya Intermediate. However, Citigroup is 4.89 times more volatile than Voya Intermediate Bond. It trades about 0.1 of its potential returns per unit of risk. Voya Intermediate Bond is currently generating about 0.03 per unit of risk. If you would invest 4,959 in Citigroup on August 25, 2024 and sell it today you would earn a total of 2,025 from holding Citigroup or generate 40.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Voya Intermediate Bond
Performance |
| Timeline |
| Citigroup |
| Voya Intermediate Bond |
Citigroup and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Voya Intermediate
The main advantage of trading using opposite Citigroup and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Voya Intermediate can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Voya Intermediate will offset losses from the drop in Voya Intermediate's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Voya Intermediate vs. Voya Bond Index | Voya Intermediate vs. Voya Bond Index | Voya Intermediate vs. Voya Limited Maturity | Voya Intermediate vs. Voya Limited Maturity |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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